The price war that makes companies become angry, Zhilang Marketing Gong Yongjun teaches you how to deal with it

The situation of traditional industries is getting worse and worse. Product homogeneity is serious. Enterprises lack core competitiveness. Price war has become the first choice for a large number of traditional enterprises to fight against their opponents. It makes many <>enterprises
talk about it in a negative tone. So how should enterprises respond to price wars? Gong Yongjun, general manager of Zhilang Marketing, said that generally speaking, price wars are initiated by <>industry
leaders and industry challengers. The price wars they initiate often bring fatal blows to other companies. If you do not find the right way to counterattack in time against the price war initiated by competitors, it will bring a devastating blow to the enterprise. However, if the price war is only initiated by the above companies for individual regions, then the companies should be calm and not blindly involved in the price war.
Enterprises should formulate strategies based on the actual situation of the initiators.
． If the price war is initiated by some small businesses but does not have a big impact on the industry, companies should not blindly get involved but should remain vigilant and pay attention to market changes at any time. In this case, large companies generally will not be fooled and follow up. But if big companies follow suit, that will be a different matter.
． If the price war is fully initiated by an industry leader or an industry challenger that is large enough to have a large impact on the industry, then the company must choose the follow-up time according to the situation. If the strength of the enterprise cannot compete with the launched price war, it must adopt corresponding strategic contraction, focusing on its familiar and key markets to consume the initiator's resources, and it can also conduct appropriate attacks on the initiator's market to force the initiator as soon as possible. End price wars.
． When a company initiates a price war, the company can join forces with other companies in the same industry to boycott the company that initiated the price war. This method may cause rebellion due to the profit trend of some manufacturers, but companies can still try this method.
． When a company participates in a price war, it is best to avoid direct price cuts and instead use promotions or increase rebates so that the company has more flexibility when the price war ends.
． Enterprises usually focus on the development and promotion of differentiated products. Differentiated products tend not to be greatly affected by price wars.